7 things to know about Low Doc Business Loans in Australia

7 things to know about Low Doc Business Loans in Australia

Published on 2021-08-11

Category: Business Growth, Unsecured Loans

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In a hyper-competitive market, time is of essence. A small business can work towards getting a slice of the market, the faster it gets its business up and running. Suffice it to say, new businesses and self-employed individuals need capital to start, sustain and succeed. Unfortunately, the tedious process of bank-approved loans doesn't support their urgent requirements. Low doc loans provide an efficient alternative through little paperwork and faster approval. It is a system carefully constructed to support small businesses. Let's understand how Low Doc loans can work for you.

1. Who are low documentation loans meant for?

It doesn’t matter if you are a new business owner starting from scratch or an established entrepreneur, you would agree that obtaining a bank loan is filled with long hours of waiting, seemingly endless paperwork and a myriad of hoops to jump through for a nod from the bank. The abundance of documentation and time taken is unnecessary and is particularly difficult for small businesses because a timely flow of money could open doors to better opportunities and provide much-needed room for expansion.

2. What is a low doc loan?

Imagine you don’t have the time or the documentation required for a traditional bank loan and require access to financial help to refinance an existing debt or expand your business or perhaps pay for new talent. Whatever the need, low doc business loans, also known as low doc loans, give you a chance to obtain the capital you need without financial statements and the mountains of paperwork. In short, no accounting report and business plan are required. 

3. Is there a borrowing limit with a low doc loan?

The principal amount that you can borrow is contingent on the lending parameters and maximum loan amounts of the lender you’re considering. We do advise you to limit your borrowing to 60%. 

4. How is it any different from traditional bank loans?

Apart from the significant reduction in documentation, these loans can be acquired online, which is good news for you because nobody wants to keep running between banks unnecessarily. Furthermore, these loans are unsecured, which means you do not have to pledge collateral or any other sort of security. 

5. In what way is a  low doc loan an option bespoke to you and your business?

Low doc loans provide flexibility that traditional bank loans simply can’t, one has the option of paying in lump sums, or setting deadlines for payment as and when the business generates income. In a market as diverse as the lending industry you can get competitive interest rates, so rest assured you will get the best deal. 

6. What are the three types of low doc loans?

Low Doc Loans- for self-employed and small businesses who cannot show financial statements and tax returns for the past two years.

Lease Doc Loans- for commercialised property investors who desire to show the income earned from their lease as proof of repayment. 

No Doc Loans- for members of the business community who are unable to provide any proof of income. 

7. Which low doc loan is best for me?

The ability to pick the right loan has to come from a thorough understanding of your business. Take some time to examine the flow of money in your business, what are you going to spend the loan amount on? When considering a low doc loan, pay close attention to the interest rate, loan amount, repayment deadlines and loan fees.

Capital Boost inspects your business requirements and connects you with a variety of lenders so that you can get the most out of your loan. 

Tagged in: Low documentation loans, Low doc loans, Types of low doc loans, Lease Doc Loans, Non-financial loans, Low doc business loans, Business Loans in Australia, No doc business loans australia, Low doc business expansion loan, Unsecured business loans.


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